Lufthansa cancels Finnair catering deal

The board at Lufthansa has chosen not to approve the purchase of Finnair’s catering business, forcing the German airline to cancel the deal. As reported in March, Lufthansa’s catering unit LSG Sky Chefs said it was planning to buy the Finnish business as part of an initiative to consolidate services, cutting costs and deflecting competition from low-cost carriers. Finnair says it will now consider other alternatives.“This is naturally a disappointment both to LSG Sky Chefs and to us,” Finnair representative Anssi Komulainen commented. “We had worked hard to make the cooperation work to the benefit of both parties.”Reuters[photo courtesy LSG Sky Chefs]